Pearson Balance Sheet Health
Financial Health criteria checks 5/6
Pearson has a total shareholder equity of £3.8B and total debt of £1.1B, which brings its debt-to-equity ratio to 29.9%. Its total assets and total liabilities are £6.7B and £2.9B respectively. Pearson's EBIT is £527.0M making its interest coverage ratio 10.8. It has cash and short-term investments of £332.0M.
Key information
29.9%
Debt to equity ratio
UK£1.14b
Debt
| Interest coverage ratio | 10.8x |
| Cash | UK£332.00m |
| Equity | UK£3.81b |
| Total liabilities | UK£2.90b |
| Total assets | UK£6.71b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: PES's short term assets (£2.5B) exceed its short term liabilities (£1.4B).
Long Term Liabilities: PES's short term assets (£2.5B) exceed its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: PES's net debt to equity ratio (21.2%) is considered satisfactory.
Reducing Debt: PES's debt to equity ratio has increased from 28.1% to 29.9% over the past 5 years.
Debt Coverage: PES's debt is well covered by operating cash flow (51.5%).
Interest Coverage: PES's interest payments on its debt are well covered by EBIT (10.8x coverage).